Who’s who in a strata scheme and what do they do?

Owners corporation

The owners corporation is made up of all the owners in the strata scheme. Each lot owner is automatically part of the owners corporation and has a right to participate in the decision making. Owners cannot ‘resign’ from the owners corporation.

It has the responsibility for:

maintaining and repairing the common property of the strata scheme

managing the finances of the strata scheme

taking out insurance for the strata scheme

keeping records and accounts for the strata scheme

administering the by–laws for the strata scheme

employment of a strata managing agent and/or caretaker

The owners corporation comes into existence immediately a strata plan is registered with the Department of Lands.

The owners corporation used to be known as the body corporate.

Executive committee

The executive committee is elected by the owners corporation at each annual general meeting. The executive committee:

makes many of the day-to-day decisions about running the scheme on behalf of the owners corporation

can have up to nine members

once elected, must appoint the committee’s chairperson, secretary and treasurer

In the event of a dispute between the owners corporation and its executive committee, the decision of the owners corporation prevails.

Strata managing agent

The owners corporation can appoint, under contract, a strata managing agent to help it manage the scheme. The managing agent:

can be delegated some or all of the functions of the owners corporation, except those to

make further delegations

decide a matter that must be decided by the owners corporation

set levies

should provide advice and guidance on legislative requirements

The owners corporation and its executive committee can still carry out their duties even if they are delegated to a managing agent.

Final authority and responsibility on any decision lies with the owners corporation.

Caretaker / Building manager

The owners corporation can engage, under contract, acaretaker/building manager to assist it in

the management of common property

controlling the use of common property by tradespersons and other non-residents

the maintenance and repair of common property

Final authority and responsibility on any decision lies with the owners corporation.